9M 2019 Results Hanover November 12, 2019 Ticker: CON - - PowerPoint PPT Presentation
9M 2019 Results Hanover November 12, 2019 Ticker: CON ADR-Ticker: CTTAY Twitter: @Continental_IR Wolfgang Schaefer CFO http://www.continental-ir.com Agenda 1 Current Market Situation 3 2 Corporation Highlights 6 3 Automotive
Ticker: CON ADR-Ticker: CTTAY Twitter: @Continental_IR http://www.continental-ir.com
Wolfgang Schaefer – CFO
Agenda
Indebtedness and Cash Flow 5 13 Corporation Highlights 2 6 Automotive Group 3 9 Rubber Group 4 11 2019 Outlook 6 16 Back-up and 2017 – 9M 2019 Fact Sheets 26 7
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations 2
Current Market Situation 1 3
3 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1) Current Market Situation Numerous Challenges Facing Continental Today
› Efficiency and productivity increase through
adjustments in organization and portfolio
› Greater focus on key growth areas of the future › 100% spin-off of the Powertrain division
Continental Strategy 2030 Influencing Factors
› Planning assumes no material recovery in 2020-2024 › At best, LV production in 2020 at same level as in 2019,
if not decline for 3rd consecutive year
› Tires market headwinds increasing
Overall Economic Situation Technological Changes
› Disruptive technologies present opportunities for
Continental, but also for new competitors Regulatory Changes
› Legislated changes directly impacting viability of certain
business areas Competitiveness › Need to improve cost position of certain products and locations Digital Transformation
› Role of digitalization and Industry 4.0 in Continental’s
transformation and competitiveness
4 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Portfolio Performance and Cost Management
Labor force adaption; variable headcount down 5% YoY1 Reductions in capex Optimization of working capital
› Further measures in preparation
1) Current Market Situation Key Details of Structural Program
Footprint
Closures in Tires, ContiTech and Chassis & Safety currently being implemented Stakeholder consultation underway in Powertrain and Interior
› Further adjustments to production,
R&D and administrative footprints in preparation Sale of 50% stake in SAS joint venture from Interior
› Possible sale of businesses and
(sub)segments
incurred by end of 2022
Reduction in gross costs annually from 2023
1 Excluding acquisitions
5 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1) Current Market Situation Making Progress in Long-Term Growth Areas
Tires Division Grand opening of new plants in Thailand and U.S.A. › Both plants commencing initial production › Ramp up over the next 4 years › New plants are part of Continental’s Tire
Division’s ‘Vision 2025’ growth strategy to have a more balanced global footprint
Clinton Rayong
Interior Division InCar Application Server (ICAS1) for Volkswagen’s ID electric vehicles › New server concept as central element for a
service-oriented electronics architecture
› Builds upon Continental’s and Elektrobit’s
leadership in vehicle electronics and software
Vitesco Technologies Start of volume production of EMR3 › Integrated high-voltage axle drive › Best-in-class power density, size and
weight
› Drivetrain for BEVs Peugeot’s e-208 and
Opel’s Corsa-e, as well as Hyundai’s Encino and Lafesta for the Chinese market
2) Corporation Highlights Most Important KPIs for 9M 2019
1 Before amortization of intangibles from PPA, consolidation and special effects 2 Amortization of intangibles from PPA 3 Attributable to the shareholders of the parent 4 In 2018 excluding net effect of US pension funding, in 2019 excluding carve-out effects 5 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by average operating assets for the LTM 6 Depreciation and amortization
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations 6
9M/2018 9M/2019 Delta Comments Sales €33.2 bn €33.4 bn 0.7% Organic growth -2.1%; FX +€504 mn
PPA2 Special effects €3.0 bn 9.0%
€125 mn €2.4 bn 7.2%
Non-cash impairment effect -€2,522 mn NIAT3 €2.2 bn
Free cash flow before acquisitions4 €370 mn
IFRS 16 impact on D&A6 +€256 mn Gearing ratio Equity ratio 17% 45% 34% 37% IFRS 16 impact +1,090 bps Trailing ROCE5 18.3% 2.5%
IFRS 16 impact -100 bps › Order intake in the Automotive Group of about €22 bn lifetime sales (book-to-bill ratio of 1.1) › Successful placements of two bonds (€1,100 mn total) at nearly zero rates in September › Additional private placements (€300 mn total) at attractive rates in October › Completion of purchase of thermoplastic specialist Merlett Group on November 4, 2019
11,000 11,033 10,693 11,284 11,013 11,374 10,788 11,230 11,047 11,264 11,103 1,066 1,155 769 884 868 615 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Sales (€ mn)
2) Corporation Highlights Sales and Adjusted EBIT1 by Quarter
7
FY Sales €44,009 mn FY Sales €44,404 mn 9M Sales €33,414 mn
1
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects
0% 1% 0%
1.7%
0%
2) Corporation Highlights Growth Profile of the Corporation Q3 2019
8
Market
1 According to IMF definition (WEO Update October 2019)
1
Conti Market Conti
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Automotive Group
PC & LT prod. growth global PC & LT prod. Europe, North America, China Passenger & Light Truck tires volume growth Replacement tire volume growth Europe Replacement tire volume growth North America ContiTech
PC & LT prod. growth global GDP growth advanced economies 2019 Commercial Vehicle tires volume growth Replacement tire volume growth Europe Replacement tire volume growth North America
6,814 6,978 6,411 6,652 6,689 6,762 6,555 557 553 254 357 368 102 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Sales (€ mn)
3) Automotive Group Key Performance Indicators in Q3 2019
9
Automotive Group
1 Before amortization of intangibles from PPA, consolidation and special effects
1
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
›
Reported EBIT: -€2,425 mn (-37.0% of sales)
›
R&D (net): €740 mn (11.3% of sales)
›
Capex: €484 mn (7.4% of sales)
Chassis & Safety
Sales (€ mn)
2,290
6.5% (+150 bps YoY)
Powertrain
Sales (€ mn)
1,926 0.4%
Interior
Sales (€ mn)
2,409 0.7% 3.3% (-560 bps YoY)
› Ramp up of MK C1 brake business, higher volumes in ADAS › Negative margin due to warranty topics of €165 mn › Adj. EBIT1 margin excluding HEV about -3% › Sales growth from higher volumes in the area of connectivity › Margin lower due to FX, warranty topics, higher R&D and D&A
6% 8% 2%
0% 0% 5%
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Automotive Group PC & LT prod. growth ww
0% 0% 1%
3) Automotive Group Organic Sales Growth vs. PC & LT1 Production
10
1 Passenger cars and light trucks <6 metric tons
Growth of organic sales vs. PC & LT1 production Organic sales growth by division in 2019
Chassis & Safety Powertrain Interior
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
4,212 4,410 4,390 4,591 4,372 4,518 4,561 544 632 547 535 540 543 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Sales (€ mn)
4) Rubber Group Key Performance Indicators in Q3 2019
11
1 Before amortization of intangibles from PPA, consolidation and special effects
1
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
ContiTech
Sales (€ mn)
1,598
7.8% (+190 bps YoY)
Tires
Sales (€ mn)
2,990 0.6% 14.5% (-140 bps YoY)
Rubber Group
›
Reported EBIT: €487 mn (10.7% of sales)
›
R&D (net): €119 mn (2.6% of sales)
›
Capex: €281 mn (6.2% of sales)
› Automotive business with headwinds from lower volumes › First outcome of margin enhancement programs visible › Better price/mix responsible for organic growth › Volume decline impacted margin negatively › Increased period expenses and ramp-up costs
2,852 2,869 2,990
32 49 72 Sales Q3 2018 Volume Price/Mix Sales Q3 2019 before Cons. and FX FX Cons. Sales Q3 2019
4) Rubber Group Tires Sales Transition Q3 2019
12 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
+1.1% +1.7%
+0.6%
+4.8%
(€ mn)
1,661 1,730 950 2,185 416 397 474 792 1,222 4,374 5,454
Net indebtedness (FY 2018) First-time adoption of IFRS 16 Dividend 2018 Capex Acquisitions Change in inventories Change in receivables Change in payables Other CF
amortization Net indebtedness (9M 2019)
5) Indebtedness and Cash Flow Net Indebtedness Bridge
13
1 According to cash flow statement including intangible assets
€1,663 mn outflow from change in working capital
1
Gearing ratio 9% 34%
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
(€ mn)
2,361
370 1,894
Cash flow from
Cash flow used for investing activities Free cash flow
5) Indebtedness and Cash Flow
Free Cash Flow Before Acquisitions Excluding Carve-Out Effects in 9M 2019
14 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Carve-out €68 mn Carve-out €68 mn
1,827
2018 2018 before acquisitions 2019 2019 before acquisitions
Pension funding €185 mn
2,176
Pension funding €185 mn
185
(€ mn)
3,542 2,798 2,048 1,984 2,858 2,995 1,661 4,302 5,666 5,454
27% 19% 13% 12% 17% 17% 9% 23% 31% 34% YE YE YE Q1 H1 9M YE Q1 H1 9M 2015 2016 2017 2018 2019 Net indebtedness (€ mn) Gearing ratio
5) Indebtedness and Cash Flow Net Indebtedness and Gearing Ratio
15 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
6.84 6.05 6.49 8.35 6.70 6.67 6.17 7.06 5.99 5.46 5.83 6.68 7% 0% 3% 1%
10%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19E Q4/19E China chg YOY 4.53 4.46 3.97 4.11 4.38 4.36 4.03 4.19 4.23 4.25 4.02 3.78 2%
2% 2%
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19E Q4/19E North America chg YOY 5.83 5.70 4.87 5.65 5.85 5.96 4.58 5.35 5.58 5.53 4.59 5.24 6%
3% 6% 0% 5%
0% -2% Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19E Q4/19E Europe chg YOY
6) 2019 Outlook PC & LT1 Production: H2 below H1 in Our Core Markets2
16 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
2 Source: IHS and own estimates, Europe excluding Kazakhstan and Uzbekistan 1 Passenger cars and light trucks <6 metric tons
North America (mn units) Europe (mn units) China (mn units)
2017: 22.1 2018: 21.7 2019E: 20.9 2017: 17.1 2018: 17.0 2019E: 16.3 2017: 27.7 2018: 26.6 2019E: 24.0
(-4% yoy) (-4% yoy) (-10% yoy)
6) 2019 Outlook Market Outlook
17 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Passenger cars and light trucks <6 metric tons 2 Medium and heavy vehicles >6 metric tons 3 Radial and bias
Commercial Vehicle2 Production (k units) Commercial Vehicle Replacement3 Tire Market (mn units) PC & LT1 Production (mn units) PC & LT1 Replacement Tire Market (mn units) Worldwide production to decrease about 6% Worldwide production to decrease about 7% Worldwide replace- ment tire market to increase about 1% Worldwide replace- ment tire market to decrease about 1%
IHS and
LMC and
IHS and
LMC and
2018E 2019E Chg. Europe 21.7 20.9
North America 17.0 16.3
South America 3.4 3.3
Asia 50.8 47.0
2018E 2019E Chg. Europe 661 594
North America 633 633 0% South America 142 170 +20% Asia 2,211 1,990
2018E 2019E Chg. Europe 366 363
North America 297 305 +2% South America 68 67
Asia 455 467 +3% 2018E 2019E Chg. Europe 25.5 25.1
North America 27.1 24.3
South America 14.8 14.1
Asia 91.0 93.0 +2%
6) 2019 Outlook Continental Corporation
18 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects 2 Before effects of currency translation and effects from changes in the fair value of derivative instruments and other valuation effects 3 In 2018 excluding net effect of US pension funding, in 2019 excluding carve-out effects
2018 2019E Consolidated sales
€44.4 bn 9.3% About €44 bn – €45 bn About 7.0% – 7.5% adj. EBIT1 margin Automotive Group
€26.9 bn €1.9 bn About €26 bn – €26.5 bn About 4.2% – 4.8% adj. EBIT1 margin Rubber Group
€17.6 bn €2.4 bn About €18 bn – €18.5 bn About 12.0% – 12.5% adj. EBIT1 margin Raw materials cost impact More than €130 mn for the Rubber Group About €50 mn burden for the Rubber Group based on latest assumptions Special effects €80 mn At least -€2.8 bn including impairments, expenses for restructuring provisions and carve-out effects Financial result Tax rate
23% About -€220 mn at constant FX2 including IFRS 16 About 27% including carve-out effects but excluding impairments Capex before financial investments PPA amortization €3.1 bn €173 mn Below 8% of sales including IFRS 16 About €200 mn Free cash flow before acquisitions3 €1.9 bn About €1.2 bn to €1.4 bn including IFRS 16
19
20
Disclaimer
› This presentation has been prepared by Continental Aktiengesellschaft solely in connection with the Analyst and Investor Call on November 12, 2019, and the subsequent road
shows and conferences in Europe and North America. It has not been independently verified. It does not constitute an offer, invitation or recommendation to purchase or subscribe for any shares or other securities issued by Continental AG or any subsidiary and neither shall any part of it form the basis of, or be relied upon in connection with, any contract or commitment concerning the purchase or sale of such shares or other securities whatsoever.
› Neither Continental Aktiengesellschaft nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss that may arise
from any use of this presentation or its contents or otherwise arising in connection with this presentation.
› This presentation includes assumptions, estimates, forecasts and other forward-looking statements, including statements about our beliefs and expectations regarding future
developments as well as their effect on the results of Continental. These statements are based on plans, estimates and projections as they are currently available to the management of Continental. Therefore, these statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Furthermore, although the management is of the opinion that these statements, and their underlying beliefs and expectations, are realistic as of the date they are made, no guarantee can be given that the expected developments and effects will actually occur. Many factors may cause the actual development to be materially different from the expectations expressed here. Such factors include, for example and without limitation, changes in general economic and business conditions, fluctuations in currency exchange rates or interest rates, the introduction of competing products, the lack of acceptance for new products or services and changes in business strategy.
› All statements with regard to markets or market position(s) of Continental or any of its competitors are estimates of Continental based on data available to Continental. Such data are
neither comprehensive nor independently verified. Consequently, the data used are not adequate for and the statements based on such data are not meant to be an accurate or proper definition of regional and/or product markets or market shares of Continental and any of the participants in any market.
› Unless otherwise stated, all amounts are shown in millions of euro. Please note that differences may arise as a result of the use of rounded amounts and percentages. › Note: Due to the application of the modified retrospective approach during first time adoption of IFRS 9, Financial Instruments, and IFRS 15, Revenues from Contracts with
Customers, as at January 1, 2018, all the figures from comparative periods are shown unadjusted. Due to the application of the modified retrospective approach during first-time adoption of IFRS 16, Leases, as at January 1, 2019, all the figures from comparative periods are shown unadjusted.
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
21
Contact Equity and Debt Markets Relations
Vahrenwalder Str. 9 30165 Hanover Germany e-mail: ir@conti.de Fax: +49 511 938 1080 www.continental-ir.com Michael Saemann Analysts, Institutional Investors and Sustainability Investors Phone: +49 511 938 1307 e-mail: michael.saemann@conti.de Marvin Kalberlah Analysts, Institutional Investors and Social Media Phone: +49 511 938 14034 e-mail: marvin.kalberlah@conti.de Christopher Macke Analysts and Institutional Investors Phone: +49 511 938 1062 e-mail: christopher.macke@conti.de Klaus Paesler Analysts, Institutional Investors, ADR and Private Investors Phone: +49 511 938 1316 e-mail: klaus.paesler@conti.de Sabine Reese Sustainability, ASM, CMD Organization, IR Website, Capital Market Disclosure Requirements Phone: +49 511 938 1027 e-mail: sabine.reese@conti.de Bernard Wang Head of IR Phone: +49 511 938 1068 e-mail: bernard.wang@conti.de Sina Ramatschi Assistant to the Head of IR Roadshow and Conference Organization Phone: +49 511 938 1163 e-mail: sina.ramatschi@conti.de
Continental Financial Calendar
22 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
2019
Preliminary figures for fiscal 2018 January 14, 2019 Annual Financial Press Conference March 7, 2019 Annual Shareholders’ Meeting (incl. key data for Q1 2019) April 26, 2019 Q1 Financial Report May 9, 2019 Half-Year Financial Report August 7, 2019 Nine-Month Financial Report November 12, 2019
2020
Annual Financial Press Conference March 5, 2020 Annual Shareholders’ Meeting (incl. key data for Q1 2020) April 30, 2020 Q1 Financial Report May 7, 2020 Half-Year Financial Report August 4, 2020 Nine-Month Financial Report November 10, 2020
Continental Share Data/ADR Data
23 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Share Data Type of share No-par value share Bloomberg Ticker CON Reuters Ticker CONG German Security Identification Number (WKN) 543 900 ISIN DE0005439004 Shares outstanding as at September 30, 2019 200,005,983 ADR Data Ratio 1:10 (ordinary share : ADRs)1 Bloomberg Ticker CTTAY Reuters Ticker CTTAY.PK ISIN US2107712000 ADR Level Level 1 Exchange OTC Sponsor Deutsche Bank Trust Company Americas
1 The split was 1:5 before October 29, 2018
Continental Bond Data
24 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Issuer Continental AG Issue Senior Notes Principal amount €600 mn €750 mn €200 mn €500 mn €100 mn €600 mn Offering price 99.410% 99.228% 100.1524% 99.804% 100% 99.802% Rating at issue date BBB+ (S&P) BBB+ (Fitch) Ba1 (Moody’s) BB (S&P) BBB (Fitch1) Baa1 (Moody’s) BBB+ (Fitch) Baa1 (Moody’s) BBB+ (Fitch) Baa1 (Moody’s) BBB+ (Fitch) Baa1 (Moody’s) BBB+ (Fitch) Current rating (corporation) BBB+ (S&P2), BBB+ (Fitch3), Baa1 (Moody’s4) Coupon 0.0% p.a. 3.125% p.a. Floating quarterly EURIBOR +0.50% 0.0% p.a. 0.231% p.a. 0.375% p.a. Issue date
Maturity
June 27, 2025 Interest payment Not applicable Annual
Quarterly First on Jan. 13 Not applicable Annual
Annual June 27 WKN A2DARM A1X3B7 A255C0 A2YPE5 A255C1 A2YPAE ISIN XS1529561182 XS0969344083 XS2063572825 XS2051667181 XS2066366290 XS2056430874 Denomination €1,000 with minimum tradable amount €1,000 €100,000 with increments of €100,000 thereafter €1,000 with minimum tradable amount €1,000 €100,000 with increments of €100,000 thereafter €1,000 with minimum tradable amount €1,000
1 Non-contracted rating at issue date 2 Contracted rating since May 19, 2000 3 Contracted rating since November 7, 2013 4 Contracted rating retroactively since January 1, 2019
New
25
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
7) Back-up Changes from the adoption of IFRS 16, Leases, as at September 30, 20191
26
1 For further details see page 39 and 40 of the 9M 2019 Financial Report 2 Depreciation and amortization 3 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by trailing operating assets
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Area Value Explanation
Consolidated Statement of Income EBIT Financial result +€24 mn
Positive impact on EBIT Negative impact on financial result Consolidated Statement of Financial Position Assets Liabilities +€1,701 mn +€1,736 mn As of September 30, 2019 Property, plant and equipment Long-term and short-term indebtedness Consolidated Statement of Cash Flow Free cash flow +€256 mn Positive impact on D&A2 causes a higher cash flow arising from operating activities and therefore a higher free cash flow Trailing ROCE3
Negative impact on trailing ROCE3 Capital expenditure (additions) +€214 mn Increase of capex (thereof €134 mn in the Rubber Group)
7) Back-up Corporation Highlights 9M 2019
27
1 Before amortization of intangibles from PPA, consolidation and special effects 2 Amortization of intangibles from PPA, tax rate of 25% applied for EPS calculation for 2018, 28% for 2019 3 Attributable to the shareholders of the parent
› Sales
Increase of 0.7% to €33,414.1 mn (PY: €33,174.3 mn); organic sales down 2.1%
› EBITDA
Decrease of 13.9% to €3,980.0 mn (PY: €4,624.2 mn)
› EBIT
Decrease of 113.2% to -€393.9 mn (PY: €2,989.8 mn);
PPA2 effect -€133.6 mn; consolidation effects -€0.3 mn; total special effects -€2,621.3 mn
› NIAT3
Decrease of 142.4% to -€926.4 mn (PY: €2,185.8 mn)
› EPS3
EPS of -€4.63 (PY: €10.93); EPS excl. PPA2 -€4.15 (PY: €11.41 excl. PPA2)
› Capex
Increase to €2,204.4 mn (PY: €1,956.2 mn); capex ratio 6.6% of sales; capex to depreciation coverage 0.5x (0.5x ex PPA2)
› R&D (net)
Expenses increased by 5.7% to €2,678.0 mn (PY: €2,534.3 mn); R&D ratio 8.0% of sales (PY: 7.6%)
› Cash flow
Operating cash flow down by €349.1 mn to €1,826.7 mn; free cash flow -€749.9 mn
› Net indebtedness
Up by €3,792.2 mn to €5,453.5 mn vs. FY 2018; Liquidity and undrawn credit lines amounted to €5,303.3 mn
› Pension and similar obligations
Long-term provisions for pension and similar obligations amounted to €5,498.0 mn (PY: €3,914.1 mn)
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
20,978 21,401 21,886 22,172 22,397 22,811 23,256 23,641 24,740 25,764 26,119 20.0% 19.0% 20.6% 20.6% 19.8% 19.4% 18.3% 17.0% 15.5% 13.5% 2.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 Trailing OA (€ mn) Trailing ROCE
7) Back-up Sustainable Value Creation
28
1 Trailing operating assets are calculated as assets for the last twelve months (LTM) 2 Trailing ROCE is calculated as reported EBIT for the last twelve months (LTM) divided by trailing operating assets
1 2
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
7) Back-up Key Historical Credit Metrics
29 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Amounts shown may contain rounding differences 2 Adjusted EBITDA as defined in syndicated loan 3 Includes changes in inventories, trade accounts receivable, trade accounts payable and discounted notes 4 Includes dividends received; income from equity-accounted and other investments; impairment and reversal of impairment losses; gains/losses from the disposal of assets, companies and business operations; as well as
changes in employee benefits and other provisions; and changes in other assets and liabilities
5 Adjusted EBITDA to net cash interest paid 6 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes. To increase transparency, receivables from and liabilities to related parties have been reclassified
from changes in other assets and liabilities to changes from trade accounts receivable and payable, starting from the 2019 reporting year. The figures from the comparative period have been adjusted accordingly
(€ mn)1 2015 2016 2017 2018 6 LTM Statement of Cash Flows Adjusted EBITDA2 6,094 6,125 6,701 6,190 5,946 Reported EBITDA 6,001 6,057 6,679 6,236 5,592 Net cash interest paid
Tax paid
Change in net working capital3
60
Other4 210 250 253
271 Cash flow arising from operating activities 4,916 4,938 5,221 4,977 4,628 Cash flow arising from investing activities
Cash flow before financing activities 1,444 1,771 1,753 1,351 606 Cash flow before acquisitions 2,701 2,288 2,349 1,769 1,250 Statement of Financial Position Cash and cash equivalents 1,622 2,107 1,882 2,761 1,971 Derivative instruments and interest-bearing investments 81 48 161 184 208 Total indebtedness 5,245 4,952 4,090 4,607 7,633 Net indebtedness 3,542 2,798 2,048 1,661 5,454 Credit Ratios Net indebtedness / adjusted EBITDA2 0.6x 0.5x 0.3x 0.3x 0.9x Net cash interest paid coverage (ratio)5 35.1x 54.8x 63.6x 67.8x 89.3x
1,350 500 600 200 100 2019 2020 2021 2022 2023 2024 2025
30
As at September 30, 2019
(€ mn) FY 18 9M 19 Gross indebtedness 4,607 7,633 Cash 2,761 1,971 Net indebtedness 1,661 5,454 Available credit lines 3,504 3,332 Total liquidity 6,266 5,303
7) Back-up Maturities for Bonds1
1 All amounts shown are nominal values
Outstanding Bonds
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Outstanding Bonds (private placements after the end of the reporting period)
(€ mn)
1,795 1,956 2,204 1,440 1,506 4,240 128 128 134 2017 2018 2019 Capex (PPE), percentage of sales Depreciation, w/o PPA PPA
5.5% 5.9% 6.6%
0.48
EPS reported PPA per share after tax EPS excl. PPA
7) Back-up Capex, Depreciation and Earnings per Share – Breakdown for 9M 2019
31
1 Amortization of intangibles from PPA 2 Assuming corporate tax rate of 28% 3 Including effects from IFRS 16
1 1
Capex, Depreciation and PPA1 (€ mn) EPS excl. PPA1,2 (€)
1 2 1,2
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
3 3
7,243.0 7,214.0 7,033 13.3% 12.5% 11.7% 8.1% 6.6% 2017 2018 2019
Sales (€ mn) EBITDA margin
7) Back-up Automotive Group Financials – Chassis & Safety
32
Chassis & Safety 9M 2019
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
› Sales decreased by 4.6% before
consolidation and FX effects
› EBITDA decreased by €78.0 mn to
€823.1 mn (-8.7%)
› Adj. EBIT1 decreased by €118.3 mn to
€464.9 mn (adj. EBIT1 margin 6.6%)
› EBIT decreased by €861.0 mn to -€279.3 mn
(EBIT margin -4.0%)
› PPA effect in 9M 2019: €0 mn › Special effects in 9M 2019: -€743.8 mn
1
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
5,760.8 5,824.0 5,893 10.7% 7.9% 6.1% 2.8% 0.4% 2017 2018 2019
Sales (€ mn) EBITDA margin
7) Back-up Automotive Group Financials – Powertrain
33
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
Powertrain 9M 2019
› Sales decreased by 2.2% before
consolidation and FX effects
› EBITDA decreased by €96.5 mn to
€360.7 mn (-21.1%)
› Adj. EBIT1 decreased by €141.5 mn to €25.4 mn
(adj. EBIT1 margin 0.4%)
› EBIT decreased by €373.6 mn to -€250.6 mn
(EBIT margin -4.3%)
› PPA effect in 9M 2019: -€8.1 mn › Special effects in 9M 2019: -€267.9 mn
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1
6,881.3 7,292.9 7,278.4 12.3% 14.2% 7.4% 8.6% 4.7% 2017 2018 2019
Sales (€ mn) EBITDA margin
7) Back-up Automotive Group Financials – Interior
34
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
Interior 9M 2019
› Sales decreased by 1.5% before
consolidation and FX effects
› EBITDA decreased by €500.3 mn to
€537.5 mn (-48.2%)
› Adj. EBIT1 decreased by €277.4 mn to €336.9 mn
(adj. EBIT1 margin 4.7%)
› EBIT decreased by €1,981.9 mn to -€1,241.1 mn
(EBIT margin -17.1%)
› PPA effect in 9M 2019: -€42.3 mn › Special effects in 9M 2019: -€1,540.0 mn
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1
8,387.4 8,289.0 8,691.6 23.7% 21.6% 21.0% 16.3% 14.7% 2017 2018 2019
Sales (€ mn) EBITDA margin
7) Back-up Rubber Group Financials – Tires
35
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
Tires 9M 2019
› Sales increased by 1.0% before
consolidation and FX effects
› EBITDA increased by €27.2 mn to
€1,821.6 mn (+1.5%)
› Adj. EBIT1 decreased by €102.4 mn to €1,250.1 mn
(adj. EBIT1 margin 14.7%)
› EBIT decreased by €135.5 mn to €1,203.6 mn
(EBIT margin 13.8%)
› PPA effect in 9M 2019: -€15.0 mn › Special effects in 9M 2019: -€27.7 mn
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1
4,677.2 4,790.0 4,848.3 11.8% 11.0% 10.6% 7.7% 7.8% 2017 2018 2019
Sales (€ mn) EBITDA margin
7) Back-up Rubber Group Financials – ContiTech
36
1 Before amortization of intangibles from PPA, consolidation and special effects
Refer to Fact Sheets for further details
ContiTech 9M 2019
› Sales decreased by 2.7% before
consolidation and FX effects
› EBITDA decreased by €13.0 mn to
€516.0 mn (-2.5%)
› Adj. EBIT1 decreased by €2.0 mn to €368.3 mn
(adj. EBIT1 margin 7.8%)
› EBIT decreased by €46.2 mn to €256.6 mn
(EBIT margin 5.3%)
› PPA effect in 9M 2019: -€68.2 mn › Special effects in 9M 2019: -€37.6 mn
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1
37
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
7) Fact Sheets Sales by Quarter
38 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 2,497.4 2,437.8 2,307.8 2,524.8 9,767.8 2,511.2 2,455.2 2,247.6 2,374.0 9,588.0 2,359.0 2,384.0 2,289.8 Powertrain 2,003.1 1,947.2 1,810.5 1,900.1 7,660.9 1,945.6 2,025.2 1,853.2 1,917.0 7,741.0 2,005.6 1,961.4 1,925.8 Interior 2,293.9 2,318.4 2,269.0 2,423.9 9,305.2 2,401.7 2,539.3 2,351.9 2,414.3 9,707.2 2,395.2 2,474.7 2,408.5 Tires 2,756.3 2,815.7 2,815.4 2,938.4 11,325.8 2,635.5 2,801.6 2,851.9 3,063.2 11,352.2 2,830.5 2,871.0 2,990.1 ContiTech 1,521.4 1,587.5 1,568.3 1,569.2 6,246.4 1,601.7 1,629.9 1,558.4 1,554.7 6,344.7 1,572.9 1,677.1 1,598.3 Other / Consolidation
Continental Corporation 10,999.9 11,033.0 10,692.7 11,283.9 44,009.5 11,012.7 11,373.8 10,787.8 11,230.1 44,404.4 11,046.7 11,264.0 11,103.4 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 0.6 0.7
1.9 Powertrain
4.0 2.4 0.9 1.0 3.1
3.9 Interior 4.7 9.5 3.7
4.3
2.4 Tires
1.3 4.2 0.2 7.4 2.5 4.8 ContiTech 5.3 2.7
1.6
2.9 2.6 Continental Corporation 0.1 3.1 0.9
0.9 0.3
2.9 Changes Y-o-Y in % 2018 2019 Sales (€ mn) 2017 2018 2019
7) Fact Sheets EBITDA by Quarter
39 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 336.9 326.9 300.3 337.5 1,301.6 356.8 324.6 219.7 312.2 1,213.3 270.0 292.7 260.4 Powertrain 213.9 214.4 187.4 239.1 854.8 207.3 219.2 30.7 117.4 574.6 186.0 185.4
Interior 273.6 288.1 287.0 291.3 1,140.0 283.4 312.1 442.3 351.4 1,389.2 235.4 269.7 32.4 Tires 651.3 674.8 661.7 760.9 2,748.7 545.8 645.0 603.6 700.8 2,495.2 610.0 597.8 613.8 ContiTech 191.3 175.6 184.0 200.0 750.9 195.9 186.5 146.6 172.4 701.4 178.8 152.9 184.3 Other / Consolidation
Continental Corporation 1,638.5 1,652.4 1,582.2 1,805.8 6,678.9 1,555.0 1,657.4 1,411.8 1,611.5 6,235.7 1,473.7 1,456.9 1,049.4 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 13.5 13.4 13.0 13.4 13.3 14.2 13.2 9.8 13.2 12.7 11.4 12.3 11.4 Powertrain 10.7 11.0 10.4 12.6 11.2 10.7 10.8 1.7 6.1 7.4 9.3 9.5
Interior 11.9 12.4 12.6 12.0 12.3 11.8 12.3 18.8 14.6 14.3 9.8 10.9 1.3 Tires 23.6 24.0 23.5 25.9 24.3 20.7 23.0 21.2 22.9 22.0 21.6 20.8 20.5 ContiTech 12.6 11.1 11.7 12.7 12.0 12.2 11.4 9.4 11.1 11.1 11.4 9.1 11.5 Continental Corporation 14.9 15.0 14.8 16.0 15.2 14.1 14.6 13.1 14.3 14.0 13.3 12.9 9.5 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 5.9
18.5 Powertrain
2.2
Interior 3.6 8.3 54.1 20.6 21.9
Tires
11.8
1.7 ContiTech 2.4 6.2
25.7 Continental Corporation
0.3
EBITDA margin in % 2017 2018 2019 Changes Y-o-Y in % 2018 2019 EBITDA (€ mn) 2017 2018 2019
7) Fact Sheets EBIT by Quarter
40 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
7) Fact Sheets Adjusted EBIT1 by Quarter
41 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 252.9 218.2 112.1 148.8 167.6 148.5 Powertrain 112.2 118.9
78.9 72.5
Interior 191.9 216.3 206.1 129.5 128.3 79.1 Tires 400.0 497.9 454.6 416.7 410.6 422.8 ContiTech 144.2 134.0 92.1 118.0 129.7 120.6 Other / Consolidation
Continental Corporation 1,066.2 1,154.7 768.7 884.2 868.1 614.5 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Chassis & Safety 10.1 8.9 5.0 6.3 7.0 6.5 Powertrain 5.7 5.8
3.9 3.7
Interior 8.1 8.7 8.9 5.5 5.3 3.3 Tires 15.2 17.8 15.9 15.1 14.7 14.5 ContiTech 9.0 8.2 5.9 7.5 8.1 7.8 Continental Corporation 9.7 10.2 7.1 8.1 7.8 5.6 Q1 Q2 Q3 Q4 Year Chassis & Safety
32.5 Powertrain
Interior
Tires 4.2
ContiTech
30.9 Continental Corporation
2018 2019 Changes Y-o-Y in % 2019
2018 2019
7) Fact Sheets Consolidated Statement of Income
42 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
7) Fact Sheets Consolidated Statement of Financial Position – Assets1
43 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 From the 2019 reporting year, the presentation of receivables from related parties is made more transparent by reclassifying
receivables from operating service business from short-term other financial assets to trade accounts receivable among these items of the statement of financial position. The figures from the comparative periods have been adjusted accordingly
2 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
2 2 2 2
Assets (€ mn) September 30, 2019 December 31, 2018 September 30, 2018 Goodwill 5,107.1 7,233.4 7,037.6 Other intangible assets 1,708.5 1,566.3 1,503.0 Property, plant and equipment 14,735.9 12,375.5 11,665.7 Investment property 11.8 12.0 11.0 Investments in equity-accounted investees 417.9 644.9 635.8 Other investments 197.2 192.9 196.9 Deferred tax assets 2,171.3 1,464.4 1,527.7 Defined benefit assets 41.1 27.8 29.7 Long-term contract assets 0.1 0.1 0.1 Long-term derivative instruments and interest-bearing investments 54.2 32.4 38.6 Long-term other financial assets 117.1 81.4 72.6 Long-term other assets 25.0 27.6 25.8 Non-current assets 24,587.2 23,658.7 22,744.5 Inventories 5,038.9 4,521.1 4,690.0 Trade accounts receivable1 8,712.7 7,858.2 8,726.6 Short-term contract assets 102.8 67.4 84.6 Short-term other financial assets1 111.7 94.4 150.9 Short-term other assets 1,477.2 1,124.2 1.256,62 Income tax receivables 287.7 208.2 204,22 Short-term derivative instruments and interest-bearing investments 153.7 151.8 153.4 Cash and cash equivalents 1,971.2 2,761.4 1,621.7 Assets held for sale 88.4 — 1.9 Current assets 17,944.3 16,786.7 16.889,92 Total assets 42,531.5 40,445.4 39.634,42
7) Fact Sheets Consolidated Statement of Financial Position – Total Equity and Liabilities1
44 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
1 From the 2019 reporting year, the presentation of liabilities to related parties is made more transparent by reclassifying
liabilities from operating service business from short-term other financial liabilities to trade accounts payable among these items of the statement of financial position. The figures from the comparative periods have been adjusted accordingly
2 The presentation of short-term contract liabilities was made more transparent by reclassifying liabilities for selling expenses to
short-term other financial liabilities. The figures from the comparative period have been adjusted accordingly
3 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes
2 3 3 2 3 3 3
Equity and liabilities (€ mn) September 30, 2019 December 31, 2018 September 30, 2018 Subscribed capital 512.0 512.0 512.0 Capital reserves 4,155.6 4,155.6 4,155.6 Retained earnings 13,820.8 15,697.2 14,985.7 Other comprehensive income
Equity attributable to the shareholders of the parent 15,442.8 17,850.4 17,215.4 Non-controlling interests 467.9 482.9 465.1 Total equity 15,910.7 18,333.3 17,680.5 Long-term employee benefits 5,777.6 4,407.0 4,186.6 Deferred tax liabilities 361.0 315.7 378.9 Long-term provisions for other risks and obligations 262.7 163.7 168.1 Long-term indebtedness 3,077.9 1,449.0 1,452.1 Long-term other financial liabilities 32.0 38.4 34.7 Long-term contract liabilities 11.8 11.0 16.6 Long-term other liabilities 18.6 13.4 14.6 Non-current liabilities 9,541.6 6,398.2 6,251.6 Short-term employee benefits 1,520.8 1,454.2 1,523.4 Trade accounts payable
1
6,868.6 7,525.6 7,016.7 Short-term contract liabilities 197.6 150.2 118,3
2
Income tax payables 859.3 750.7 796,2
3
Short-term provisions for other risks and obligations 1,166.7 1,066.1 1.032,1
3
Short-term indebtedness 4,554.7 3,157.9 3,356.7 Short-term other financial liabilities
1
1,000.2 1,042.6 1.083,1
2
Short-term other liabilities 911.3 566.6 775,8
3
Current liabilities 17,079.2 15,713.9 15.702,33 Total equity and liabilities 42,531.5 40,445.4 39.634,43
7) Fact Sheets Consolidated Statement of Cash Flows
45 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
Note: IFRS 9 and IFRS 15 applied starting 2018; IFRS 16 applied starting 2019
1 The previous year’s figures have been adjusted due to the change in recognition of interest and penalties on income taxes.
To increase transparency, receivables from and liabilities to related parties have been reclassified from changes in other assets and liabilities to changes from trade accounts receivable and payable, starting from the 2019 reporting year. The figures from the comparative period have been adjusted accordingly.
1 1 1 1 11
2019 2018 2019 2018 Net income
2,223.5
636.2 Income tax expense 342.8 616.2
176.4 Financial result 158.9 150.1 60.9 39.0 EBIT
2,989.8
851.6 Interest paid
Interest received 50.7 23,31 8.5 10,81 Income tax paid
Dividends received 26.2 22.6 10.2 7.0 Depreciation, amortization, impairment and reversal of impairment losses 4,373.9 1,634.4 3,019.9 560.2 Income from equity-accounted investees and other investments, incl. impairment and reversal of impairment losses 138.5
150.4
Gains/losses from the disposal of assets, companies and business operations
Changes in inventories
trade accounts receivable
trade accounts payable
employee benefits and other provisions 271.0
285.1
239.9 148,61 Cash flow arising from operating activities 1,826.7 2,175.8 1,082.8 708.3 Cash flow from the disposal of assets 23.1 43.0 7.6 7.2 Capital expenditure on property, plant and equipment, and software
Capital expenditure on intangible assets from development projects and miscellaneous
Cash flow from the disposal of companies and business operations 1.1 8.9 0.3 9.1 Acquisition of companies and business operations
Cash flow arising from investing activities
Cash flow before financing activities (free cash flow)
275.6
Change in indebtedness 961.3 701.7
Successive purchases
Dividends paid
— — Dividends paid to and cash changes from equity transactions with non-controlling interests
Cash and cash equivalents arising from first-time consolidation of subsidiaries 0.4 2.0 — 1.5 Cash flow arising from financing activities
Change in cash and cash equivalents
169.2
Cash and cash equivalents at the beginning of the reporting period 2,761.4 1,881.5 1,786.3 2,131.5 Effect of exchange-rate changes on cash and cash equivalents 44.3
15.7
Cash and cash equivalents at the end of the reporting period 1,971.2 1,621.7 1,971.2 1,621.7 January 1 to September 30 Third Quarter (€ mn)
7) Fact Sheets Reported and Adjusted 9M 2019 Results – by Division
46 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects
Note: IFRS 16 applied starting 2019
(€mn) 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 Sales 7,214.0 7,032.8 5,824.0 5,892.8 7,292.9 7,278.4 8,289.0 8,691.6 4,790.0 4,848.3
33,174.3 33,414.1 EBIT 581.7
123.0
740.8
1,339.1 1,203.6 302.8 256.6
2,989.8
in % of sales 8.1%
2.1%
10.2%
16.2% 13.8% 6.3% 5.3% 9.0%
Amortization of intangible assets from PPA 0.0 0.0 8.6 8.1 38.2 42.3 13.4 15.0 67.9 68.2 0.0 0.0 128.1 133.6 Total special effects 1.5 743.8 22.8 267.9
1,540.0 0.0 27.7
37.6 0.0 4.3
2,621.3 Total consolidation effects 0.0 0.4 12.5 0.0
0.0 3.8
5.9 0.0 0.0
5.8 Total consolidation & special effects 1.5 744.2 35.3 267.9
1,535.7 0.0 31.5
43.5 0.0 4.3
2,627.1 Adjusted operating result (adj. EBIT)
1
583.2 464.9 166.9 25.4 614.3 336.9 1,352.5 1,250.1 370.3 368.3
2,989.6 2,366.8
in % of adjusted sales 8.1% 6.6% 2.8% 0.4% 8.6% 4.7% 16.3% 14.7% 7.7% 7.8% 9.0% 7.2%
Corporation Interior Chassis & Safety Powertrain Tires ContiTech Cons./Corr.
7) Fact Sheets Reported and Adjusted 9M 2019 Results – by Group
47 9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
1 Before amortization of intangibles from PPA, consolidation and special effects
Note: IFRS 16 applied starting 2019
(€mn) 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 Sales 6,411.2 6,554.9 4,390.0 4,561.4
20,203.4 20,005.8 13,011.8 13,450.7
EBIT 364.2 -2,424.5 519.4 487.2
851.6 -1,970.5 1,445.5 -1,771.0 1,641.9 1,460.2
2,989.8
in % of sales 5.7%
11.8% 10.7% 7.9%
7.2%
12.6% 10.9% 9.0%
Amortization of intangible assets from PPA 15.5 14.6 27.7 27.9 0.0 0.0 43.2 42.5 46.8 50.4 81.3 83.2 0.0 0.0 128.1 133.6 Total special effects
2,514.9
23.4 0.0 2.7
2,541.0
2,551.7
65.3 0.0 4.3
2,621.3 Total consolidation effects 0.2
4.9 0.0 0.0 0.1 1.5
9.7 0.0 0.0
5.8 Total consolidation and special effects
2,511.5
28.3 0.0 2.7
2,542.5
2,547.8
75.0 0.0 4.3
2,627.1 Adjusted operating result (adj. EBIT) 1 254.0 101.6 546.7 543.4
768.7 614.5 1,364.4 827.2 1,722.8 1,618.4
2,989.6 2,366.8
in % of adjusted sales 4.0% 1.6% 12.5% 12.3% 7.1% 5.6% 6.8% 4.2% 13.2% 12.3% 9.0% 7.2%
9M 2018/2019 Q3 2018/2019 Automotive Rubber Cons./Corr. Corporation Automotive Rubber Cons./Corr. Corporation
7) Fact Sheets Continental’s Credit Rating
48
1 Contracted rating since May 19, 2000 2 Contracted rating retroactive since January 1, 2019 3 Contracted rating since November 7, 2013
9M 2019 Results – November 12, 2019 EDMR – Equity and Debt Market Relations
BBB+ / Baa1 BBB / Baa2 BBB- / Baa3 BB+ / Ba1 BB / Ba2 BB- / Ba3 B+ / B1 B / B2
S&P, Fitch / Moody’s
Standard & Poor’s1 Moody’s2 Fitch3
Before Siemens VDO
Non-Investment Grade Investment Grade